Which of the Statements About Closing the Accounts Is NOT

question 43

Multiple Choice

Which of the statements about closing the accounts is NOT true?

• A) Revenue accounts are debited.
• B) A net profit is credited to the retained profits account.
• C) Expense accounts are credited.
• D) Dividends received are credited.

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Definitions:

Tax Rate

The percentage at which an individual or entity is taxed on their income or property.

Employee Stock Ownership Plans

Retirement plans designed to give employees ownership interest in the company by allowing them to acquire stock, contributing to company success and employee benefit.

Tax Advantages

Financial benefits derived from specific tax laws or regulations that reduce the amount of tax payable to federal or state governments.

Risk-Free Retirement

A concept of planning for retirement in a way that minimizes exposure to financial risks and uncertainties.